The prominent asset manager Cathie Wood may spend a lot of time praising Tesla (TSLA) -), but this week something else seems to have caught her eye.
Wood purchased 777,468 shares of Ginkgo Bioworks (DNA) -) on Sept. 19. Ginkgo is the Boston biotech that's drawn fresh attention after the recent announcement that it would partner with Alphabet (GOOGL) -) to develop new large-language models. In plain English, that means more artificial intelligence.
Related: Cathie Wood dumps nearly $30 million worth of two beloved tech giants
The Ark Invest CEO is known for buying dips in many a company. So while this move is no surprise, it is of interest as Wood has also been paring her stakes in both electric-vehicle leader Tesla and graphics-chip specialist Nvidia (NVDA) -) over the past month, clearly seeking new innovations to support.
While Wood's further purchases of Ginkgo are in line with her strategy to spot beaten-down stocks with potential, the move seems risky even with the new Alphabet partnership.
Founded in 2008 by five MIT scientists, the company has yet to become profitable. That said, its big ideas — such as its aim to help cut costs and manpower with its automated lab solutions — could achieve landmark changes for the biotech industry.
Ginkgo stock debuted on the New York Stock Exchange in mid-September 2021, opening trading above $11. The stock traded above $14 in October of that year and has slumped since then, last trading at $1.86.
But for an investor who's not afraid to dream big — and Wood is certainly that — it just might be worth a look.
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